European Market: Agnostic or Sector Specific?
April 29, 2024
by a searcher from Università Bocconi in Rome, Metropolitan City of Rome Capital, Italy
From labeling to laser technology, passing through video conferencing, and waste management. These are just a few of the niche markets where companies acquired by Italian searchers operate. Do you believe an agnostic approach is the best strategy to maximize shareholder and searcher returns?
from Ludwig in München, Deutschland
Consider classic role models like Warren Buffett, Elon Musk, the Kardashians, or Oprah Winfrey, who became billionaires through vastly different approaches and skill sets. Now imagine them switching roles: Warren selling lifestyle products, the Kardashians building rockets, Elon hosting talk shows, and Oprah analyzing balance sheets. Indeed, everyone can see Elon's success in social business models with Twitter. Regarding the 'want,' I found the Wealth Dynamics test very helpful in narrowing down my personal entrepreneurial profile.
Then there's the 'can'—I think you should only buy companies that would also consider hiring you as CEO, or at least at the C-level. Convincing a seller to sell and securing funding, then achieving success in an unknown industry, is improbable, no matter how many targets you identify.
Probably the best way is as Tomas and others wrote to priorize target industries and if you do not find anything in your priority 1, then switch to 2, then to 3, etc. This has the huge advantage, that after some talks you know enough about the industry, even if you never worked in it and at least can convince the seller to sell it to you (not sure about the other hurdles funding and the operative management).
in Zwolle, Nederland